Benefits of Applying Online
When Banks Compete, you win.
Apply for a Home Loan at ApnaPaisa and we will match your requirements with the best offers from our network of over 400 service providers. We will get a maximum of five providers to compete for your business. WHEN BANKS COMPETE YOU WIN. You can then decide which home loan is best for you based on:
- Lowest Interest Rate
- Lowest EMI
- No Pre-payment charges
- Lowest Processing Fees
- Maximum Eligible Loan Amount
- Mandatory Documents Required
- Lowest Processing Fees
Or any other factor that is important to you.
Negotiating Tips
1) If you have a good credit record and your income is sufficient to justify the loan you can negotiate on interest rates. You can also try and get Processing fees or legal or valuation fees reduced or completely waived.
2) If you go for a floating rate loan then pre-payment charges are not payable.
3) When interest rates are high and are expected to go down you should go in for a floating rate loan as it makes no sense to lock into high fixed rates or the so called Dual rate loans where rates remain fixed for a couple of years before shifting to regular floating rate loans. Please review this decision at least once every 6 months
4) Take term insurance and critical illness and accidental disability policy for the full loan amount to make sure you or your loved ones don't have to worry about loan repayment should you die or are disabled due to a critical illness or accident. You cannot be forced to buy this policy from the insurance company chosen by the lender - you should choose your own insurer.
Banks may review home loan rate hikes
Banks will revise their home loan interest ratesApnaloan.com Research Bureau
10 Aug 2007
Mumbai: The boards of most public sector banks, which are scheduled to meet in the coming weeks to consider results for 2006-07, may now include on their agenda the review of home loan rate hikes.
This follows the finance minister's request to PSU banks not to raise home loan rates for those customers who have taken less than Rs 10 lakh loan.
This is the second time that the FM has asked banks not to raise home loan rates for the existing customers."It may be difficult for some banks to roll back the rate hike, but for those banks which have yet not announced a rate hike may consider not to raise rates for the existing home loan borrowers below Rs 10 lakh," said a senior banker.
State Bank of India, Bank of Baroda and Canara Bank are some of them which have raised home loan rates for all customers even the existing borrowers when they revised their prime lending rates in the wake of policy tightening by RBI.
However, other banks such as Allahabad Bank and Union Bank of India had refrained from raising rates for the existing home loan borrowers even while raising rates for new borrowers. Some banks such as Indian Bank did not raise rates at all, awaiting further policy directions.
Earlier, the Alco Committee of SBI had suggested to the board of SBI not to revise the home loan rates for the existing customers. However, considering the pressure on the margins, the board had decided to go ahead with a rate hike for all customers of SBI, including the home loan borrowers.
"We believe unlike in the case of corporates where the interest component is not a very significant portion of the loan, in the case of retail home loans, EMI is a very significant portion of the income, sometimes even 50% of the income. So we have decided not to hurt that segment with a rate hike, " said MV Nair, CMD of Union Bank of India, which has not raised rates for the existing home loan customers in all brackets.
In the last three months, banks have raised their prime lending rates two-three times.
And each time, the rate hike was in the region of 50 to 100 basis points. Now, ICICI Bank is charging 14% for fixed rate loans, while its floating rate is pegged at 12%. By restricting rate hikes to borrowers above Rs 10 lakh, the public sector banks will be altering the terms of their contract with the borrowers. In terms of the home loan contract, floating rate loans were to be revised, following every revision in the benchmark rate.
(Courtesy: Economic Times)
For more information on Home Loans click here